tiprankstipranks
Trending News
More News >
Advertisement
Advertisement

Hormel (NYSE:HRL) Hits 52-Week Low after Earnings Miss

Story Highlights

Hormel sinks to new lows as its earnings and outlook disappoint investors.

Hormel (NYSE:HRL) Hits 52-Week Low after Earnings Miss

Earlier today, we filled you in on food stock Hormel (NYSE:HRL) and its fourth-quarter earnings, which turned out to be a fairly substantial flop as far as analysts were concerned. It didn’t do much for investors, either, who bugged out in large numbers, sending Hormel shares down over 5% in Wednesday afternoon’s trading to ultimately hit a 52-week low.

Elevate Your Investing Strategy:

  • Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

Most of what Hormel had to tell investors was certainly not appetizing. The firm expected the environment to continue to remain a challenge, thanks to declining demand—and if demand for food is dropping, you know there’s a problem somewhere—as well as inflation that’s gone from “massive” to merely “outrageous.” Throw in some troubles in Hormel’s turkey business, declining revenue, and issues in China, and it’s clear that Hormel has plenty of headwinds working against it.

Will a “Rebuilding Year” Calm Hormel Investors?

Give Hormel its due: it understands a need for “urgency” in turning things around. CEO Jim Snee has already announced that this is an “investment year” for Hormel, in which it plans to put more behind the things that are likely to improve cash flow. To that end, Hormel has already allocated $250 million “over the next several years” to help drive growth. While the process will take time—Snee projects the full benefit of the spending won’t be visible until 2025—it’s a process that needs to happen.

Is Hormel a Good Stock to Buy Now?

Turning to Wall Street, analysts have a Moderate Sell consensus rating on HRL stock based on two Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 33.81% loss in its share price over the past year, the average HRL price target of $31.40 per share implies 2.9% upside potential.

Disclosure

Disclaimer & DisclosureReport an Issue

1